Intent of sole-source award

This is a notice that the 15th Contracting Squadron, Hickam AFB, Oahu, Hawaii intends to award a sole source purchase order to Audio Visual Co. Inc., 98-820 Moanalua Rd, Aiea, HI 96701, under the authority of FAR 6.302-1. This notice is not a request for proposal nor a solicitation of offers. A determination not to compete this proposal procurement based on response to this notice is soley within the discretion of the Government. This notice of intent is not a request for competitive proposals or a solicitation of offers. The point of contact for this action is Darrell Strahan, contracting officer, phone (808)448-2943, email darrell.strahan@hickam.af.mil. In accordance with FAR 6.302?1(a)(2), Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements (ref. 10 U.S.C. 2304(c)(1)). (1) Contracting Activity: Department of the Air Force, 15th Contracting Squadron, Specialized Flight (15 CONS/LGCZ), 90 G Street, Building 1201, Hickam AFB, HI 96853?5230. (2) Nature and/or Description of Action Being Approved: Justification for procurement of SMART technology wireless audio visual equipment from the Audio Visual Company (AVCO). (3) Description of Services required to Meet the Agency's Needs:The Asia Pacific Center for Security Studies (APCSS) requires a wireless technology?based solution for integration of SMART board educational technology for their conference rooms. The APCSS has a requirement to maximize their instructor flexibility in the APCSS complex by providing a wireless matrix?switcher system, allowing instructors to operate the SMART Board interactive whiteboards remotely within each of their respective classrooms and conference rooms. The estimated value of the SMART technology equipment will not be disclosed for competition purposes but is under $550,000.00. (4) Statutory Authority Permitting Other Than Full and Open Competition: In accordance with 10 U.S.C., 2304(c) (1) - There is only one responsible source from which the requirement can be met. The head of an agency may use procedures other than competitive procedures when the property or services needed by the agency are available from only one responsible source, or from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency. Use of the SMART technology for the APCSS is essential, to ensure compatibility with existing SMART technology components throughout the APCSS complex. SMART Technologies, Inc. is a private company headquartered in Calgary, Alberta, Canada, with authorized dealers across North America. As the only manufacturer, SMART Technologies, Inc. has one source from which to procure SMART technology for the Pacific Region, in the State of Hawaii, which is the Audio Visual Company (AVCO). No other sources are available in Hawaii. (5) Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires use of the Authority Cited: The Audio Visual Company (AVCO) is the only authorized supplier of items manufactured by SMART Technologies, Inc., for the State of Hawaii and the Pacific Region. The APCSS has already invested over $420,000.00 in outfitting their classrooms with SMART Board interactive Page 2 of 3 whiteboards. There is no other similar wireless technology compatible, nor any other source from which to procure. (6) Description of Efforts Made to Ensure That Offers are Solicited from as Many Potential Sources as deemed Practicable: A solicitation for SMART Board interactive whiteboards was issued in July 2008 and competition was solicited. As a result, the 15th Contracting Squadron was informed that local businesses on the island of Oahu, initially interested in submitting price quotes for SMART technology items, sought wholesale pricing from regional suppliers on the continental U.S. (CONUS). Once the regional suppliers from CONUS found out items were for Hawaii, they referred them to the Audio Visual Company located on Oahu. Attempts to solicit offers from as many sources as available proved impossible (reference RFP#DHAM80023, dated 14 Jul 2008). Only one source is available on the island of Oahu. (7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: In accordance with FAR 13.106?3, if only one offer is received, the Contracting Officer will include in the contract file a statement of price reasonableness. The statement may be based on market research, comparison of proposed prices with prices found reasonable on previous purchases; current price lists; comparison with similar items in a related industry, comparison to an independent government estimate, or any other reasonable basis. (8) Description of the Market Research Conducted and the Results: The Contracting Officer conducted market research and discovered that a local business on the island of Oahu, initially interested in submitting price quotes for SMART Technology equipment items, sought wholesale pricing from regional suppliers on the mainland U.S. This local business informed the Government that he was not able to submit a price quote because once the regional suppliers found out items were to be shipped to Hawaii; they were instead referred to the Audio Visual Company located on Oahu. For previous SMART Technology equipment purchases, attempts to solicit offers from as many sources proved impossible (reference RFP#DHAM80023, dated 14 Jul 2008). Market research has revealed that only one source is available on the island of Oahu. (9) Any Other Facts Supporting the Use of Other Than Full and Open Competition: As delineated herein, the Audio Visual Company (AVCO) is the only authorized supplier of items manufactured by SMART Technologies, Inc., for the State of Hawaii and the Pacific region. (10) A Listing of the Sources, if any that Expressed in Writing an Interest in the Acquisition: From a recent acquisition of the same equipment (FA5215?08?M?7065), two small businesses operating on the island, Pelatron, Inc. and Laser Barcode Systems, were interested in the acquisition. These two companies were precluded from submitting a price quote because they can only purchase products from the manufacturer's exclusive supplier in Hawaii, which is the Audio Visual Company (AVCO), and AVCO will not team with any other company on the island to provide the items. (11) A Statement of Actions, if any, the Agency May Take to Remove or Overcome any barriers to Competition Before any Subsequent Acquisition for the Services Required: The Agency will continue to monitor the marketplace and inquire if other suppliers of SMART technology become available. Page 3 of 3 (12) Technical and Requirements Certification: based on the aforementioned, I certify that the facts and representations under my cognizance, which are included in this justification and which form a basis for this justification, are complete and accurate, to the best of my knowledge and belief. _____________________________________________________________ NAME AND TITLE OF TECHNICAL EVALUATION Date Mr. Brad Ong, Technical Support Asia Pacific Center for Security Studies (APCSS) (13) Contracting Officer Certification: IAW FAR 6.3030?2(a)(12), I certify that the data supporting the recommended use of Other than Full and Open Competition is accurate and complete to the best of my knowledge and belief. _______________________________________________________________ DARRELL L. STRAHAN Date Contracting Officer APPROVAL In accordance with AFFARS 5306.304, I hereby approve this justification to permit other than full and open competition, and support the recommended award to the Audio Visual Company, as there is no other reseller authorized to sell SMART Technology products in the state of Hawaii and the pacific Region. ________________________________________________________________ RODGER W. PHILLIPS, Lt. Col, USAF Date Commander, 15th Contracting Squadron